The 0.33% Expense Gap Between FIGB and VGIT

Investors in the Fidelity Investment Grade Bond ETF (FIGB) pay a 0.36% expense ratio, 33 basis points more than the 0.03% charged by the Vanguard Intermediate-Term Treasury ETF (VGIT). This cost difference stems from the fund structures. FIGB is actively managed, holding approximately 180 securities including corporate bonds. VGIT is passively managed and holds 76 intermediate-term U.S. Treasury notes and bonds. The active strategy of FIGB produced a 4.1% dividend yield and a 5.9% one-year return. The passive strategy of VGIT produced a 3.8% dividend yield and a 4.7% one-year return. Risk profiles diverge with the funds' five-year maximum drawdowns: -18.06% for FIGB and -15.03% for VGIT. Liquidity differs by scale, with FIGB holding $450.9 million in assets under management and VGIT holding $48.5 billion in assets under management.